Carlos Ghosn Arrested Again on Fresh Suspicions
Join the Wall Street Journal and National Geographic on one of five unique land expeditions to Israel and Palestine Columbia, South Korea, China or South Africa book this once in our lifetime trip at NAT GO, expeditions dot com slash W, S J or call eight eight eight two zero five five six two one just a month after being released from prison. Former Nissan chairman Carlos gone is arrested again, this is a new suspicion cited by prosecutors that basically he stole company money, six states sued the Trump administration for attempting to eat school, lunch standards. They are attacking the health and the safety of our children and Tesla's first quarter deliveries disappoint. This is. What's news from the Wall Street Journal? I'm Kim get all San let's get started. Now before we get into our big story of the morning the re-arrest of Carlos going and Japan over new suspicions of financial misconduct. Here's what you missed overnight. Ethiopian officials have just released their preliminary report into the crash of a Boeing seven thirty-seven max Payne and early March which killed all one hundred fifty seven people on board. Ethiopia's transport minister said pilots repeatedly followed procedures recommended by Boeing, but that they were unable to control the plane the crew perform it all the procedures repeatedly provided by the mind fracture. But was not able to control their crops. That has to do with the anti stall technology. We were discussing yesterday and it raises pressure on Boeing to fix the problem. It's worth noting that these are the preliminary findings, so they can change later and six US states and the district of Columbia sued the Trump administration and federal court over the White House's decision to roll back school lunch nutrition standards in December. Here's New York's attorney general Latisha James eliminated. The final maximum sodium. Target delayed by five years. The second intermediate maximum sodium targets set for the twenty nine thousand nine hundred twenty twenty school year and cut in half the whole grain requirement simply put the Trump administration is putting our children in harm's way. There are about thirty million US children who are eligible for free or reduced price. School lunches, also laid on Wednesday. Tesla reported worse than. Effected first quarter deliveries. The electric car company said it delivered just sixty three thousand vehicles last period. That's eight thirty one percent drop from the previous three months. The issue. Tesla is struggling to ship its model three sedan to China and Europe it became available there for the first time this year and those markets they're increasingly crucial for the company after the reduction in federal tax credits. The buyers receive in the US for electric cars, and the chairman of the house tax writing committee Democrat Richard Neal formally requested President Trump's tax returns on Wednesday. President Trump however seemed unbothered by the request. Moments ago as the IRS for six years of your tax returns. Your is that all. Usually it's ten so I guess they're giving up now we're under audit on despite what people said, and we're working that out as I'm always under ordered it seems but until such time is I'm not under audit. I would not be line to do that. Thank you as president. Mr. Trump is under mandatory IRS audit. He said that the audits date from before he ran for office. Now, our main story this morning. Carlos Cohen has been arrested again in Tokyo this time on suspicion of abusing his former position as the chairman of the Nissan Renault alliance for personal gain to refresh your memory, Mr. goon was arrested for the first time in Japan in November. He was released about a month ago to make sense of what's happened. This time I phoned up Peter Landers our Tokyo bureau chief so Peter what's happened. This time why is Carlos going back in prison. Prosecutors are exciting news suspicions against go. Specifically that Nissan sent fifteen million dollars to a distributor overseas. We know this is a distributor in Oman in the Middle East, and they're saying that fifteen million dollars Carlos going basically took five million for himself. They're essentially accusing him of stealing from the company till and it's a very serious allegation. But. Serious allegations require serious evidence in we we haven't seen that evidence yet these new charges revealed earlier why let him out of prison and then rearrest him. Prosecutors have said they're continuing to investigate what gone did while he was chairman and CEO Nissan, and this is fairly difficult case to untangle their number of subsidiaries and shell companies and so on and so forth that are involved in this allegation. So it may take them some time to get what they felt was enough evidence to arrest him over these suspicions. So what happens next will Mr. go and be released soon. He's held for can be held for at least forty eight hours. And then the prosecutors could seek to extend that by up to twenty days by getting court approval. So it's quite possible that he would be behind bars again for the next three weeks or so, and ultimately, they're likely to charge him over these suspicions. We don't have formal charges on this. Oman matter. Yet. But I'd say that's fairly likely to happen within the next couple of weeks after the arrest. Mr. Owen said in a statement, my arrest this morning is outrageous and arbitrary why arrest me except to try to break me. I will not be broken. I am innocent of the groundless charges and accusations against me. You can follow the latest twist and turns in the saga at WSJ dot com. Join the Wall Street Journal and National Geographic on one of five unique land expeditions to Israel and Palestine Columbia, South Korea, China or South Africa along the way, you'll enjoy exclusive access to pioneering journalist scientists and business leaders in each country and gain profound perspectives on the past present and future of our world book this once in a lifetime trip at NAT GO, expeditions dot com slash W, S J or call eight eight eight two zero five five six to one. Onto markets, obviously, pay attention to what investors make Tesla's disappointing deliveries when US markets open later for more on what we're paying attention to. Here's our hurt on the street columnist. Nate tap, Wall Street resort. Earl dollar index was down point one percent. Its biggest decline in more than a week, the big factors probably China. Chinese purchasing managing indexes for March come in very strong with the service index compiled by private companies sightseeing hitting a fourteen month high. Unfortunately, a lot of that is probably related to seize analogy. February did a trade industrial profits. And almost everything was very bad March data looks good. But may not mean that a sustainable coverage is really here yet. Now, the Scud here's what to look forward to later today negotiations between the US and China over a resolution to the year long trade dispute continue in Washington. President Trump is scheduled to meet the lead negotiator at the White House today possibly setting up a future summit with China's president Xi Jinping. However, we're reporting that a main sticking point has been the Chinese desire to see all tariffs lifted. Once a deal is reached the White House wants to leave them in place to ensure that China complies with whatever is negotiated yesterday. The IMF released a study on the impact that the tariffs are having on the global economy. Here's our reporter Josh zoom room with the findings their key. Takeaway is that both countries lose. You know, the US growth is hit by this Chinese growth is hit even more. And to the extent that there are winners. The winners win by small amount is I guess what you might say. And a former CIA. Officer convicted of providing classified information to Chinese intelligence will be sentenced by federal judge in Virginia. He faces the possibility of life in prison. It comes days after a woman carrying to Chinese passports was arrested for sneaking into President Trump's mar-a-lago resort. With malware FBI director, Chris Wray, and others have flagged Chinese espionage as the biggest counter intelligent threat facing the US plus for years, there's been speculation about who will replace Warren buffet at the helm of Berkshire Hathaway the conglomerate he's run for decades whoever's chosen as the successor. We report today that all ready. The company's been changing one key area collaboration between the various Berkshire companies, see ios. It's a significant departure from years past when they were seen as a collection of independently operated businesses, finally, the producer of corona beer, and sped Covad. Constellation brands reached a deal to sell some of. Wine brands for one point seven billion dollars. Now, these are the cheaper ones most available for less than eleven dollars a bottle that have become less profitable as our alcohol. Buying habits have shifted. Have you upgraded? The type of wine you buy or shifted from drinking entirely lettuce. Gnome tweet us at WSJ podcast. That's what's news from the Wall Street Journal. Thanks for listening. Now, get to work.